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Pest Analysis On Hewlett-Packard (HP)

Pest Analysis On Hewlett-Packard (HP)

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Pest Analysis On Hewlett-Packard (HP)
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Pest Analysis On Hewlett-Packard (HP) - December 2nd, 2010

Hewlett-Packard Company (NYSE: HPQ), commonly referred to as HP, is an American multinational information technology corporation headquartered in Palo Alto, California, USA.. The company was founded in a one-car garage in Palo Alto by Bill Hewlett and Dave Packard, and is now one of the world's largest information technology companies, operating in nearly every country. HP specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise servers, related storage devices, as well as a diverse range of printers and other imaging products. HP markets its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors.

HP's posted net revenue in 2009 was $115 billion, with approximately $40 billion coming from services. In 2006, the intense competition between HP and IBM tipped in HP's favor, with HP posting revenue of US$91.7 billion,[5] compared to $91.4 billion for IBM; the gap between the companies widened to $21 billion in 2009. In 2007, HP's revenue was $104 billion,[6] making HP the first IT company in history to report revenues exceeding $100 billion.[7] In 2008 HP retained its global leadership position in inkjet, laser, large format and multi-function printers market, and its leadership position in the hardware industry.[8] Also HP became #2 globally in IT services as reported by IDC & Gartner.[9]

Major company changes include a spin-off of part of its business as Agilent Technologies in 1999, its merger with Compaq in 2002, and the acquisition of EDS in 2008, which led to combined revenues of $118.4 billion in 2008 and a Fortune 500 ranking of 9 in 2009.[9] In November 2009, HP announced the acquisition of 3Com;[10] with the deal closing on April 12, 2010.[11] On April 28, 2010, HP announced the buyout of Palm for $1.2 billion.[12] On September 2, 2010 won its bidding war for 3PAR with a $33 a share offer ($2.07 billion) which Dell declined to match.[13]

On August 6, 2010 CEO Mark Hurd resigned.[14] Cathie Lesjak assumed the role interim CEO, and on September 30, 2010, Léo Apotheker became HP's new permanent CEO and Ray Lane, Managing Partner at Kleiner Perkins Caufield & Byers, was elected to the position of non-executive Chairman. Both appointments are effective November 1, 2010.[15]


Private ownership is the dominant market system in the United States. Moreover, both home and private businesses are granted the authority for decentralized decision-making. The free system in the American business sector is made evident by the amount of the production and output of private businesses. Statistics showed that about two-thirds of the overall American economic outputs are for the individuals and their private businesses. A third of these output are the only part that goes to the government (US Department of State, 2006). This statistical division indicates that the private businesses and the consumers have a more essential role in the business sector as compared to the political level. Still, the government plays a significant role to the country’s economy including the business sector. One of the important roles of the government in business is the development and enforcement of various business-related laws. These laws include business and property right protection as well as the prohibition of business practices that are perceived as unjust. Product safety is also part of these legislations (Microsoft Encarta Online Encyclopedia, 2005).

Is there any DATA/Statistics to support your statement??


The United States economy is considered as one of the largest in the world. The businesses in the country are mainly market-oriented where most decisions and activities are developed by the people (Wikipedia, 2005). This has been made evident by the annual purchases of the American consumers, which on the average, totaled to more than 5 trillion dollars every year. This suggests that about 80% of the total goods and services produced by US businesses are purchased and supported by the local consumers. In 1999, a total of $2.9 trillion was the US’s gross domestic product (Microsoft Encarta Online Encyclopedia, 2005). Based on a more recent statistical estimation, the US GDP per capita is at $41, 800 and has a real growth of 3.5%. The GDP purchasing parity on the other hand is at $12.37 trillion based on the 2005 estimation (The World Factbook, 2006). The activeness of the US economy is mainly attributed to its rich and diverse business sectors. One of the most important sectors in the country is the manufacturing industry. HP is actually under the industrial machinery sector where computer as well as engines and other equipment are produced. This manufacturing sector actually accounts for 10.7% of the annual value from manufacturers (Microsoft Encarta Online Encyclopedia, 2005). This suggests the ability of the American to live a fairly good standard of living. There are some economic problems however in the US which could affect the growth and strategic plans of the economy. One of these problems is the significant level of unemployment rate in the country. In addition, report also indicated that a considerable percentage of young Americans fail to graduate (Microsoft Encarta Online Encyclopedia, 2005).

When you do the case study analysis, you have to provide the DATA, statistics to support your statement, not only do the descriptive statement. For instance, when you talk about US economy, you have to snow the statistics such as, CPI, GDP, etc.


The population of the country is considered as the third most populated country in the world, which is estimated to be around 296 million (Microsoft Encarta Online Encyclopedia, 2005). In addition to size, the United States is said to be a pluralistic society. This indicates that the country’s inhabitants are highly diverse in terms of religions, races and nationalities. In addition to the presence of minority groups, the diversity in the country is also attributable to open trade and influx of immigrant workers. The rise of immigrant workers suggests the growing working sector of the country, which increases the need for computers and technology. In the employment factor, certain problems are evident. For example, in terms of the wages given to the people, sixteen states in the country provide a wage higher than the minimum, which is at $5.15 for every hour. There are 26 states that provide minimum wages based on the national level. Ohio and Kansas on the other hand offer wages below the minimum, while six other states do not apply any state laws (Wikipedia, 2006). The problem on discrimination is also an occurrence as female workers typically earns less than 10 percent than their male counterparts, performing similar responsibilities and with same level of training and education. The 1996 statistical findings also showed that male college graduates typically earn $63, 127 every year whereas female college graduates earn an average of $41, 339. Unemployment rates are significantly related to the people’s education level as the unemployment rate of 7.1% in 1998 was observed among individuals who were not able to finish their high school education. On the other hand, the same statistics revealed that only 1.8% of the college graduates were unemployed (Microsoft Encarta Online Encyclopedia, 2005).

Again, where is the DATA/Statistics to support your statement?? For example, you can think about the Unemployment rate, Wages, Social security, Anti-Discrimination, etc.


Being one of the countries who were able to use the computer and the internet for the first time, the American society is very much adapted to technology. In fact, statistics suggested that the employment sector is continuously using computers and related gadgets in their work activities; this greatly contributed to the growth of the computer industry. In addition, job openings for computer professionals are also said to double from 1996 until 2006. People had also grown accustomed in using the internet for work, paying bills, reserving airline tickets as well as shopping. Statistics showed that in 1999, a total of 84 million Americans have Internet access either at home or at work

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